The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/(Decrease) Assets Cash and cash equivalent 51,500 45,400 ? Accounts Receivable ? ? ? Inventories 61,400 ? 9,500 Fixed Assets, net 160,000 110,000 ? Total Assets 324,300 268,700 55,600 Liabilities Accounts payable ? ? ? Accrued liabilities 31,000 ? -6,550 Long-term notes payable 60,000 78,540 ? Stockholders' Equity: Common Stock 143,050 105,110 37,940 Retained earnings 54,800 19,700 35,100 Total liabilities and stockholders' equity 324,300 268,700 55,600 Income Statement Year Ended December 31,2020 Revenues and gains: Sales revenue 510,000 Interest revenue 11,800 Total revenues and gains 521,800 Expenses Cost of goods sold 205,500 Depreciation expense 21,000 Other operating expense 126,000 Interest expense 24,300 Total expenses 376,800 Income before income taxes 145,000 Income tax expense 16,300 Net Income 128,700 Notes Acquisition of fixed asset during 2020 71,000 Sale proceed from sale of plant asset - Receipt for issuance of notes payable - Payment for note payable 18,540 Dividend paid 93,600 Book value of equipment sold - Prepare a complete statement of cash flows for 2020 using the indirect method using the information above.

The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/(Decrease) Assets Cash and cash equivalent 51,500 45,400 ? Accounts Receivable ? ? ? Inventories 61,400 ? 9,500 Fixed Assets, net 160,000 110,000 ? Total Assets 324,300 268,700 55,600 Liabilities Accounts payable ? ? ? Accrued liabilities 31,000 ? -6,550 Long-term notes payable 60,000 78,540 ? Stockholders' Equity: Common Stock 143,050 105,110 37,940 Retained earnings 54,800 19,700 35,100 Total liabilities and stockholders' equity 324,300 268,700 55,600 Income Statement Year Ended December 31,2020 Revenues and gains: Sales revenue 510,000 Interest revenue 11,800 Total revenues and gains 521,800 Expenses Cost of goods sold 205,500 Depreciation expense 21,000 Other operating expense 126,000 Interest expense 24,300 Total expenses 376,800 Income before income taxes 145,000 Income tax expense 16,300 Net Income 128,700 Notes Acquisition of fixed asset during 2020 71,000 Sale proceed from sale of plant asset - Receipt for issuance of notes payable - Payment for note payable 18,540 Dividend paid 93,600 Book value of equipment sold - Prepare a complete statement of cash flows for 2020 using the indirect method using the information above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Maple Group Ltd
Comparative Balance Sheet
December 31, 2020 and 2019
	2020	2019	Increase/(Decrease)
Assets
Cash and cash equivalent	51,500	45,400	?
Accounts Receivable	?	?	?
Inventories	61,400	?	9,500
Fixed Assets, net	160,000	110,000	?
Total Assets	324,300	268,700	55,600
Liabilities
Accounts payable	?	?	?
Accrued liabilities	31,000	?	-6,550
Long-term notes payable	60,000	78,540	?
Stockholders' Equity:
Common Stock	143,050	105,110	37,940
Retained earnings	54,800	19,700	35,100
Total liabilities and stockholders' equity	324,300	268,700	55,600

Income Statement
Year Ended December 31,2020
Revenues and gains:
Sales revenue	510,000
Interest revenue	11,800
Total revenues and gains		521,800
Expenses
Cost of goods sold	205,500
Depreciation expense	21,000
Other operating expense	126,000
Interest expense	24,300
Total expenses		376,800
Income before income taxes		145,000
Income tax expense		16,300
Net Income		128,700

Notes
Acquisition of fixed asset during 2020		71,000
Sale proceed from sale of plant asset		-
Receipt for issuance of notes payable		-
Payment for note payable		18,540
Dividend paid		93,600
Book value of equipment sold		-

Prepare a complete statement of cash flows for 2020 using the indirect method using the information above.

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